Purchase of unquoted shares

From April 2006 SSAS and SIPP's have been able to purchase unquoted shares. This creates a number of issues, particularly where the member or any parties connected to the member have control of the company via existing shareholdings.

Additionally the Trustees are required to consider the suitability of the investment in achieving the long-term aim of providing retirement benefits for the member.

Westerby Trustee Services will endeavour to accommodate all reasonable requests for the purchase of unquoted shares, however such purchases are entirely at our discretion and we reserve the right to refuse any investment that does not meet our criteria of suitability.

Assessment of Suitability - requirements

  • Accounts, ideally previous 3 years
  • Auditors or accountants verification in respect of solvency and viability
  • Independent opinion of share value.
  • Confirmation of scrip rights or bonus issues attached to the shares
  • Copies of existing share purchase agreements including any restrictive covenants.
  • Sensible limits in regard to the proportion of shares to be held. Trustees would not wish to have such number of shares as to give a controlling interest
  • Consideration to be given to proximity of retirement of the member
  • Consideration to be given to the implementation of “key man insurance” in order to protect share value in the case of the demise of a key/controlling director
  • Existing share purchase agreements may need replacing following purchase of shares.
  • Unquoted shares are not an easily realisable asset. The trustees would not therefore allow a disproportionate purchase of unquoted shares and would seek to maintain a “balanced portfolio” of investments

N.B. These requirements are subject to any changes in the pension regulations that may occur from time to time.

***IMPORTANT NOTE*** - All Unquoted Share purchases MUST be approved by our Managing Director on completion of the Unlisted Share Purchase Questionnaire.




Registered Address: 1 & 2 St Matthews Business Centre, Gower Street, Leicester LE1 3LJ
Registered in England & Wales No. 02562924
Westerby Trustee Services Ltd is Authorised and Regulated by the Financial Services Authority Reg. No. 463533